The whole cycle from Order to Production to Income Distribution according to the Value Equation
NRP Round Trip
Example of a Cycle
from Order to Production
to Income Distribution
This round trip includes:
● Order from a customer, which creates a plan based on a recipe
● Purchasing inputs that won’t be made by the group
● Making what was ordered, based on the plan, and coordinating P2P
● Shipping or delivering the products
● Receiving payment for the products
● Distributing the income received to people who contributed, using a
democratically decided value equation
First an order is received...
It also could be that the group has decided to create something without a customer order, for example
some tools they need.
Or some groups usually make to inventory. For example, if the tomatoes are ripe, it is time to make a
large batch of salsa, which will be sold or traded after it is made. We call this a work order instead of a
In this example it is a
customer order for a
3D printed part. This
group usually makes
to order because
each order for 3D
printed parts is
The order generates a plan based on the recipe...
If there is a recipe for the product that was
ordered, it is used to generate a plan.
This plan has one order item, with two
processes planned to create the product.
The process to print the part is dependent
on completion of the design.
Some recipes are very exact, when the
manufacturing information is known.
Some are more general.
In either case, the plan can always be
changed to fit the circumstances, either by
changing the details, or re-scheduling a set
of dependent processes forward.
Here is the resource flow for creating the product...
Any inputs that won’t be created are purchased...
Required inputs can be purchased by the group or by individuals, who will get credit for this as a
contribution. This is the logged purchase of the polymer consumed to make the part, paid for by a
member of the group. It is now in inventory. Some will be used for this part and some for other work
in the future. If an input is already in inventory, purchasing it will not be planned.
The 3D printer that was used for this work was
purchased through cash contributions by two
people in this simple example. In the real
Sensorica case, it was many more.
The contributors get paid back over time as the
printer makes money. All of the resource and
cash flows are transparent to everybody. When
everyone is paid back, the printer will become
part of the commons.
The community funded a piece of equipment...
The product is created...
Here the part is being made. All the
inputs are logged transparently.
People can coordinate their work
through views and notifications.
The group can decide whether to log
work contributions for credit, or to give
credit for the deliverables without
logging the hours of work.
Each output is logged too. If an output
of this process is needed for the next
process, it is now available.
Some resources are consumed by the
process and no longer visible in
inventory. Others, like equipment, are
Inputs like designs or ideas can be
cited so the creators get credit for their
contributions to those inputs.
The product is shipped and payment received...
When the product is shipped or delivered, that is logged, and it goes out of inventory.
When the payment is received, it is also logged. Payment could be in a standard currency or a
crypto-currency or some other resource.
Here is how the income gets distributed...
As you can see here, it cost the network €185.63 to make the printed part...
...but they sold it to
the customer for
In a normal business,
the surplus would go
to the business
But in a value
network, it is shared
by the contributors.
The group has agreed upon a value equation...
Here is the value equation agreed
upon by this fictitious team.
In this example, a percentage is
set aside for fixed lab costs, and
also a percentage for people who
do support work for the network in
general. The rest goes to the
people who produced the product
that was sold, based on their work
and financial contributions.
Another network might split by
percentage by work function, for
example growing, harvesting, and
drying herbs. Or translating,
editing, publishing a translated
work based on word count. These
examples use deliverables rather
than time as contributions.
Here are the details when the value equation is run...
This gives an explanation of how the distribution will be created for this order for the 3D printed part. It
allows people to experiment with defining their value equations, and see how things will work before
agreeing on the rules and actually distributing income.
And here is the final distribution for this work...
Here are the aggregated results of
this value equation’s rules applied
to the work and financial
contributions made by the group,
both to fulfill the order and to
support the production work.
Everyone’s contributions were
traced back through the value flow
so everyone can get rewarded.
A final note: The functions and options that the software supports were created to fit the
needs of the networks that have used the NRP thus far. As others start using the software,
we are sure that more ideas will be introduced. We will be happy to continue to refine the
software to fit the needs of other networks.
The Mikorizal team